Tesla(US:TSLA) Di Yi Cai Jing Zi Xun·2025-06-05 23:04Core Viewpoint - The conflict between Tesla CEO Elon Musk and former President Donald Trump has intensified, leading to significant market concerns regarding Tesla's future and its valuation [1][2]. Group 1: Market Reaction - Tesla's stock price dropped by 14.2%, marking its largest single-day decline since 2020, resulting in a market capitalization loss of over $150 billion [1]. - Following Musk's criticism of the congressional spending bill, institutional investors engaged in large-scale selling of Tesla shares [2]. - The stock's trading volume was nearly double the average of the past 100 days, indicating heightened market activity and concern [3]. Group 2: Legislative Impact - The House version of the budget bill proposes to phase out the $7,500 federal tax credit for electric vehicle purchases by the end of 2025, which has raised alarms among investors [2]. - Morgan Stanley estimates that if the bill passes, Tesla could face a profit pressure of up to $3.2 billion due to additional regulatory constraints [2]. Group 3: Political Dynamics - Musk's shifting political stance, from supporting Trump to criticizing his administration's policies, has led to skepticism from both Democratic and Republican supporters [2]. - The public confrontation between Musk and Trump could expose Tesla to uncontrollable business risks, as highlighted by investment manager Jed Ellerbroek [2]. - Steve Bannon, a former senior advisor to Trump, suggested that if Trump returns to power, a comprehensive review of government contracts and subsidies for Musk's companies would be necessary [3]. Group 4: Valuation Concerns - Tesla's stock has declined by 29.5% year-to-date, with a significant portion of its gains from last summer being erased due to political controversies and protests [2]. - The company's current trading price reflects a valuation of 140 times future earnings, which remains high compared to other major tech stocks like Nvidia [3].